Core Viewpoint - Chongqing Guogui Racing Technology Co., Ltd. (referred to as "Guogui Technology") has had its IPO application accepted by the Beijing Stock Exchange, aiming to raise 456 million yuan through the issuance of up to 21.483 million shares, primarily focusing on high-performance automotive modification parts under the "MAXPEEDINGRODS" brand, with 99% of its revenue coming from overseas markets. However, the company faces significant challenges including high inventory levels, currency fluctuations, and reliance on specific platforms for sales [1][2]. Financial Performance - The company's revenue for the reporting period (2022 to 2024) was 749 million yuan, 640 million yuan, and 690 million yuan, showing year-on-year changes of -14.47% and 7.63% respectively. Net profit figures were 85.88 million yuan, 66.16 million yuan, and 51.12 million yuan, with year-on-year declines of -22.96% and -22.73%. The operating cash flow was 53.66 million yuan, 120 million yuan, and 47.44 million yuan, with a significant increase of 122.69% in the first year but a decline of -60.31% in the last year. The gross profit margin decreased from 43.25% to 41.91%, while the net profit margin fell from 11.46% to 7.41% [2]. Inventory Concerns - The company's inventory accounted for over 54% of total assets, with values of 325 million yuan, 317 million yuan, 355 million yuan, and 403 million yuan from 2022 to the first half of 2025. This is significantly higher than the industry average of 35%. The company acknowledged that if products do not sell or prices drop, it may need to recognize substantial impairment losses, which could severely impact profits [3]. Currency Fluctuation Impact - With over 98% of revenue coming from exports, the company primarily deals in USD and EUR. In 2023, a strong dollar led to a foreign exchange loss of 2.259 million yuan. In the first half of 2025, a depreciation of the RMB resulted in a foreign exchange gain of 11.966 million yuan, accounting for 25.6% of net profit. The company warned that future fluctuations in exchange rates could compress profit margins [4]. Platform Dependency Risks - Sales from eBay and Amazon accounted for 78.6%, 77.3%, 75.1%, and 77.4% of total revenue from 2022 to the first half of 2025. Increased commission rates on eBay, account suspensions on Amazon, and changes in e-commerce tax policies in Europe and the US could raise operational costs. Additionally, a recent increase in import tariffs on certain Chinese goods could adversely affect profitability, especially since nearly 58% of revenue comes from the US market [5]. Shareholder Buyback Pressure - Certain shareholders have conditional buyback rights, which could pressure the company's cash flow and equity structure if the IPO is not completed by December 31, 2026, or if it is rejected. This clause has been suspended but can be reinstated, indicating potential financial strain if the IPO fails [6].